Re the initial question, how to make it...this is the original stack and whack...you just stack, sew then carefully cut all layers except the bottom instead of stacking, whacking, adjusting then sewing.

PLease note....the eHow link shows how to make chenille STRIPS that can the be sewed onto a background to form pictures...this requires you to cut through ALL layers of fabric after the stitching is done. The quiltbus link shows how to make chenille fabric...you cut through all layers EXCEPT the bottom one...so you have fabric you can use whole or cut into shapes as appliques...The process is the same but the difference is in whether the back fabric is cut or not.

for both, notice that stitching and cutting is done on the bias...this effects both the way the fabric moves after the cutting is completed and also the way the fabric frays when it's washed...you can stitch and cut on the straight of grain, but the fraying changes considerably and you may not get the look you want.

Fabric selection - for this you want fabric that frays.... but fabric that frays nicely - Design of the fabric is less important since you will only see the edges of each fabric. fabric with rayon in it "blooms" nicely at the cut edges and is usually lighter in weight so is a good choice. "Bloom" (for this application) means that the cut ends of threads in the fabric actually expand and create volume - this normally doesn't happen as much with polyester fabrics, so natural fibers usually work best. This does not require to quality quilting cotton, tho they do work well, other fabrics can do as well or better - Flannel can work, but it adds extra weight that you may not want (remember that you're already sewing several layers of fabric together!) A more loosely woven fabric (Osnaburg, eg) can work well too - the blooming here starts with larger size threads so the final "bloom" will have a different texture as well. Old clothing, etc can all be used.

To run a simple test for "frayability", cut strips on the bias (inch or less is fine for this test) of a few different fabrics you're considering, stack them all up and run a row or two of stitching down the center then throw it in the wash/dry with other laundry like jeans or towels (remember that you will probably get lint out of this so be careful what you throw in with it. check to see which fabric types work best after they are "beat up".

fabric placement - quiltbus talks about putting the brightest fabric on top...if you're new to this and like to experiment, make samples to show how final color can change by using the same fabrics in a few samples, but change the sequence of fabrics in the stack before stitching. After the fabric "blooms" you can get very different looks just by changing the location of each color/design in the stack. using a bright fabric as the background fabric (which will be un-cut in the quiltbus instructions) makes a different look than using a plain back there, for example. Also, simply putting one fabric in upside down in the stack can change the color blend.

If you do this experiment, you can use the samples to make a quilt by adding sashing, so you're not wasting any fabric on trials.